5 Dividend Stocks for Investors Who Want Income Without the Market’s Wild Swings

Soda, toothpaste, phone service, power, and prescription drugs keep selling even as the economy slows, and the five companies in this group pay their shareholders from that steady demand. All five stocks have a beta well below 1, meaning they have historically moved less than the broader market. The yields run from about 2.3% at the two consumer staples to nearly 6% at the drugmaker. Pfizer (NYSE:PFE | PFE Price Prediction) leads the group with a forward yield of 5.83% for $29.49. Each pick below starts with whether the dividend is safe, and only then gets to the yield.

Coca-Cola: Rising Cash Flow Guidance Backs a Dividend Raised Through Two Recessions

Coca-Cola (NYSE:KO) pays an annualized forward dividend of $2.12 per share. At $93.32, that’s a yield of 2.27%. It has the lowest yield on this list and the best dividend record.

Dividend safety: The dividend accounts for about 64% of trailing EPS of $3.33. Management raised its 2026 free cash flow guidance to about $12.4 billion, up from $12.2 billion. Based on the current share count, the dividend would use roughly 74% of that figure. It also holds $12.9 billion in cash. In the available dividend history, the quarterly payout grows each year from $0.16 in 1999 to $0.53 in 2026. It kept rising through the financial crisis, from $0.38 in 2008 to $0.41 in 2009 and $0.44 in 2010. It rose again in the pandemic year, reaching $0.41 in 2020.

Bull case: Second-quarter adjusted EPS of $0.97 beat the $0.93 estimate. Revenue rose 6.7% to $13.38 billion, and global unit case volume grew 5%. Comparable EPS growth is now expected to reach 9%-10% this year. Coca-Cola sells mostly concentrate to bottlers in more than 200 countries and territories, so it earns high margins without having most of the factories and trucks. The stock’s beta is 0.318.

Risk: Investors have already noted. The stock is up 36.09% year to date and trades at about 28x trailing earnings. That places it close to the average analyst target of $94.74. Coca-Cola is also still fighting the IRS in tax court, and its fourth quarter has six fewer calendar days than last year’s.

Colgate-Palmolive: A Dividend Increase Every Year Since 2017 With an Ex-Date Close at Hand

Colgate-Palmolive (NYSE:CL) pays $0.53 a quarter, or $2.12 annualized. At $93.40, the yield is 2.27%. The next ex-dividend date is October 20, 2026, and that payment goes out November 13, 2026.

Dividend safety: On trailing GAAP EPS of $2.54, the payout ratio comes to about 83%. That figure looks worse than the business really is because restructuring charges are weighing on reported profit. In the second quarter, GAAP EPS was $0.86 after $129M in program charges, while Base Business EPS (which strips those charges out) was $0.99. Base Business operating profit grew 5% to $1.15 billion. The quarterly dividend has gone up every year in the recent record, from $0.40 in 2017 to $0.53 in 2026. That includes the pandemic year, when it rose to $0.44 in 2020 from $0.43 in 2019. Payments run without a break from 1999 through 2026.

Bull case: People keep brushing their teeth in a recession. Colgate holds 41.3% of the global toothpaste market and 32.7% of the manual toothbrush market. Hill’s Pet Nutrition brings in roughly 22% of total sales. Gross margin expanded 140 bps to 61.5%, and organic volume improved from the prior quarter for the third consecutive quarter. Management raised its Base Business EPS growth guidance to the mid-single digits.

Risk: North America sales fell 3.0%, and shareholders’ equity is only $236M. That leaves it with little buffer. The stock also trades at 37x trailing earnings, compared with 21x forward.

AT&T: Free Cash Flow Covers the Payout More Than Twice Over

AT&T (NYSE:T) pays $1.11 a year. At $23.27, the yield is 4.77%.

Dividend safety: Based on current shares, the dividend would use roughly 42% of management’s 2026 free cash flow guidance of $18B+. It also equals roughly 49% of adjusted EPS guidance at the low end ($2.25-$2.35). Free cash flow is expected to rise to $19B+ in 2027 and $21B+ in 2028. AT&T has a mixed dividend record. It held the payout at $0.52 a quarter through the 2020 pandemic, then cut it to $0.2775 in 2022 after spinning off WarnerMedia. It has paid that same amount every quarter from April 2022 through October 2026, and management says it expects to keep the $1.11 annualized rate.

Bull case: Wireless and broadband bills are among the last expenses families cut. AT&T added 432K postpaid mobile subscribers last quarter, with churn of just 0.86%, and 646K internet customers. Its fiber network reaches 38.6M locations, with a target of 40M by year-end 2026. AT&T plans to return $45B+ to shareholders from 2026 through 2028. The stock trades at about 10x forward earnings. This month, the company agreed to sell AT&T Mexico and announced a new fiber joint venture with Global Infrastructure Partners and CPP Investments.

Risk: Debt is heavy. Total debt stands at $144B, and net debt/EBITDA of 2.68x is above management’s 2.5x target. Interest expense rose 13.8%. One analyst also warned that a SpaceX threat could loom over the stock for an extended period. Shares are down 8.89% over the past month.

Dominion Energy: Data Center Demand Supports a Regulated Payout

Dominion Energy (NYSE:D) pays $0.6675 a quarter, or $2.67 annualized. At $63.03, the yield is 4.24%.

Dividend safety: The dividend comes to about 75% of the midpoint of 2026 operating EPS guidance ($3.57), which is a normal payout level for a regulated utility. Management reaffirmed its credit, dividend, and long-term growth guidance. Income investors should know the history. Dominion cut its quarterly dividend from $0.94 to $0.63 in late 2020 after selling its gas assets. It raised the payout to $0.6675 in 2022 and has kept it there since. A five-year capital plan of $64.7 billion means Dominion will depend on access to the capital markets.

Bull case: Electricity demand barely changes in a recession, and Dominion serves about 3.6 million homes and businesses under regulated rates. Second-quarter operating EPS of $0.79 beat the $0.6845 estimate, its sixth consecutive beat. Revenue rose 17.59%. Data center growth in Loudoun County, Virginia, supports long-term operating EPS growth guidance of 5% to 7% through 2030. The stock’s beta is 0.619, and it trades at about 16x forward earnings.

Risk: The proposed $66.8B merger with NextEra Energy still needs approvals in several states. The offshore wind project carries cost-recovery risk. GAAP net income fell to $340M from $760M after $626M in nonregulated impairments.

Pfizer: The Highest Yield in the Group at About 10x Forward Earnings

Pfizer pays $1.72 a year, for a yield of 5.83%. That is high-yield but just below the ultra-high-yield cutoff.

Dividend safety: The dividend takes up about 57% to 61% of the reaffirmed adjusted EPS guidance of $2.80-$3.00. Pfizer paid $9.8 billion in dividends in 2025. It expects no share repurchases in 2026, keeping more cash available for dividends and debt reduction. Its free cash flow yield is about 5.39%, and interest coverage is 5.78. The quarterly payout rose every year from $0.32 in 2017 to $0.43 in 2025, including increases through the pandemic to $0.38 in 2020 and $0.39 in 2021. So far, it has held at $0.43 through 2026.

Bull case: Patients keep filling prescriptions in a downturn. Second-quarter adjusted EPS of $0.77 beat the $0.68 estimate. New and acquired products grew 18%, with Eliquis up 19%. Management raised the midpoint of revenue guidance by $500M and plans 10 Phase 3 studies for berobenatide, its monthly GLP-1 obesity drug. CEO Albert Bourla said, “Our oncology portfolio remains a source of strength.” The stock has a beta of 0.276.

Risk: Pfizer posted a Q2 GAAP net loss of $248M after a $3.8B impairment. Generic and biosimilar competition is expected to cost about $1.1B in revenue this year, and the company is replacing its departed CFO. On GAAP numbers, the stock trades at 39x trailing earnings.

One Portfolio, Five Steady Paychecks

Coca-Cola and Colgate have the longest records of dividend increases. AT&T and Pfizer offer the highest yields, with payouts well covered by free cash flow and earnings guidance. Dominion adds regulated utility income supported by growing data center demand. Over the next few weeks, keep an eye on Colgate’s October 20 ex-dividend date, AT&T’s progress on paying down debt, and the approval schedule for Dominion’s merger.

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